When your home and buildings are impacted by a storm, especially your living space, addressing and repairing the damage quickly becomes a top priority. In a sectional title environment, the community’s insurance policy plays a crucial role. However, this is often where owners in a scheme may feel let down or helpless, as they rely on others who may not prioritize their needs.
This feeling of frustration is particularly common when multiple sections are damaged after a storm or other major event. Storms often occur outside of regular business hours, on holidays, or at times when the managing agent and insurance advisors are not immediately available. Claims are usually reported the next day, and it may take several days before the insurer responds by sending out a loss adjuster to assess the damage.
What follows can seem like a drawn-out process: contractors’ quotes, loss adjuster reports, insurance approval – each step may feel like it takes forever, leading to growing frustration. Then, just when everything is finally approved by the insurer, the reinstatement or repair process begins, introducing a new set of challenges.
The importance of sound management structures
Despite these challenges, much of the frustration can be alleviated if a scheme has sound management structures in place and owners are well-informed about what to do in the event of significant damage. We believe that schemes should have a clear claims procedure, and that owners should be educated on how to report damage or handle an emergency situation.
Community schemes are best insured through brokers who specialise in this type of insurance and possess the technology, teams, resources, and experience to respond swiftly. While it’s challenging to have a “pleasant storm claim experience,” we know that the burden of a storm damage claim is lightened when insurance brokers act quickly, providing immediate support and guidance. Implementing technology can ensure that affected owners can report their damages instantly, allowing loss adjusters to attend without delay.
Common problem areas in multiple storm damages
When dealing with multiple storm damages, certain issues frequently arise:
- Old damage claims: Claims for old damage are not permitted. Attempting to claim for pre-existing damage can negatively impact all owners, as it necessitates closer scrutiny and causes delays.
- Poorly maintained windows: Damages to windows that have been poorly maintained, such as loose or falling putty, are often not accepted by insurers.
- Ceiling damage: Ceilings that collapse clearly due to the storm will be covered. However, if ceilings were poorly installed, using incorrect nails or with brandering too far apart, insurers may reject the claims.
- Wooden pergolas: Wooden pergolas must be properly noted, and any pre-existing damage will lead to a rejection of the entire claim. Non-standard items are not automatically covered.
- Roofing: Any pre-existing maintenance related roofing failures – if left unattended will cause further damages to the internal fixtures. The insurer will only admit damages caused by the storm, not damages as a result of wear and tear. This could affect resulting damages as well.
- Vacant or unoccupied sections: Where sections are unoccupied, the likelihood of damages becoming increasingly worse is heightened, especially where roof damages cannot be seen, other than when ingress occurs. Insurers may after 30-days, apply restrictions to cover, or remove certain cover completely.
- Carport maintenance: Carports should be regularly maintained and checked to ensure coverage.
- Materials on carports or awnings: Materials or canvases on carports or awnings that are over 10 years old will usually only be reinstated to 50% of their value, if at all.
- Vehicle damage from collapsing carports: Damage to vehicles caused by collapsing carports are not covered under the policy, as it only covers the buildings and improvements of the property itself.
Ensuring swift and empathetic claims management
We certainly lead the way in managing large claims, ensuring that owners are attended to swiftly, with dignity, respect, and empathy. For more information on preparedness and how to be more organized in such situations, please visit our dedicated storm-claim pages linked below this article. These pages also include extra resources, such as downloadable explainers.
Authors: Candice Persson and Bruce Gibson
Addsure is a leading sectional title insurance broker. Get fit and proper advice from advisors who understand sectional title.